Brown-Forman price target lowered to $59 from $64 at Roth MKM

Roth MKM analyst Bill Kirk lowered the firm’s price target on Brown-Forman to $59 from $64 and keeps a Neutral rating on the shares. The company’s Q2 results saw gross margin expansion of 460bps y/y from 90bps in Q1 and marks a reversal of almost a decade of contraction, the analyst tells investors in a research note. The firm adds however that while the development is exciting in the long term, it still sees four potential headwinds in the near-term, including a possible resumption of EU tariffs beginning January 1st, a less favorable relative pricing environment, weakening consumer spending, and high channel inventory levels.